Today’s Federal Court rejection of a legal challenge by the opponents of channel deepening represents the conclusion of a long debate on this issue and will underpin Victoria’s efforts to continue to be a competitive location for manufacturing, transport and distribution industries, says VECCI.

 

“We applaud the decision, as further delays would have ensured that average Victorians would have paid the price in terms of increased project costs, more expensive goods, constricted exports and job losses”, says VECCI Chief Executive Officer Wayne Kayler-Thomson.

 

“Economically, this project will add, by conservative estimate, a net extra $1.9 to $2.2 billion to the national economy over coming decades.  Melbourne is Australia’s transport, distribution and manufacturing hub, and not proceeding would have invited a similar process of economic decline whereby Melbourne lost the mantle of being Australia’s financial capital to Sydney in the 1980s.

 

“The Port of Melbourne is also the key international link for many of our rural export industries, which would have become less competitive in international markets with the prospect of higher freight costs.

 

“VECCI has pushed for channel deepening since the beginning of this decade because Melbourne risked being the `odd man out’ among Australia’s capital city container ports by not deepening to 14 metres.  This situation is already disrupting shipping schedules with restricted loadings and cargo diversions adding to costs across the supply chain.

 

“Shipping Australia, representing shipowners and operators, had already indicated that if channel deepening did not proceed, a special Melbourne freight charge might apply to imports and exports passing through the Port of Melbourne.

 

“While the anti-channel deepening protestors’ arguments have been conveyed with a sense of high theatre and emotion, it is important to remember that the Project has been ticked off by two levels of Government (State and Federal), a 15,000 page Supplementary Environmental Effects Statement (SEES), and an independent Inquiry into that SEES.

 

“There has also been a successful trial dredge and the project will be overseen by an independent Environmental Monitor and subject to an Environmental Bond”, says Mr Kayler-Thomson.